Tanzania seeks $1.2 billion financial support for SGR’s second phase

Tanzania is in dire need of financial support for the highly anticipated standard gauge railway (SGR) line. The government is seeking for a jaw breaking $1.2 billion for the progress of the project. The second phase of the SGR construction was to begin this month. The Premier John Magufuli unveiled the kick off of phase 1 in April 2017. The President went on to contact World Bank and South Africa to help with the funding of the SGR project.

The multi-billion railway project’s construction is in the hands of of Yapi Merkez Insaat Ve Sanayi, a Turkish construction in partnership with Mota-Engil, Engenharie and Construcao Africa, SA of Portugal.

It is understood that President Magufuli had reached out to President Jacob Zuma of South Africa to assist the East Africa country access loans from the BRICS-run New Development Bank which South Africa happens to be a member.

Further, Dr Magufuli asked the World Bank leader, Dr Jim Yong Kim to support the project financially to cut the burden cost. Presidents, Dr Zuma and WB’s President Jim Yong paid Tanzania a visit this year.

The SGR project will be constructed on the same line with the Central Railway (CR) Line built. The SGR stretches 1,057 km from Dar es Salaam to Lake Victoria shores. Previously, in historical times, the Germans had erected the CR back in 1905 from Dar es Salaam to Kigoma. The British colonial power took over to extend its length from Tabora to Mwanza adding 427km.

The SGR project is Tanzania’s initiative and goal to revive the rail transport that is a cheap and rather effective transport for goods.

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